AML Compliance Challenges with New Payment Methods & Prepaid Cards
December 3, 2020
The global prepaid card market is expected to reach $3.65 trillion by 2022, further fueled by advances in technology and the transition into an increasingly digital and cashless economy. These payment methods are essential for creating important revenue streams for businesses and can be effective for government relief programs. However, there is risk involved and those who seek to take advantage of these methods.
Prepaid cards can be pre and re-loaded with money, used globally and are easier to setup than other types of cards. This can make them targets to be exploited, especially by sophisticated criminal groups who take advantage of the anonymity these cards can provide.
Mitigating the Risk of New Payment Methods
In 2019, crime cases related to different types of prepaid cards resulted in $103 million worth of losses in the United States alone, according to the FTC. Financial services and institutions that depend on older, manual and unsecure technology to monitor transactions and verify customer identities while simultaneously complying with strictly enforced regulations will find it difficult to combat fraudulent card behavior. The good news is that mitigating the risk posed by New Payment Methods and prepaid cards is not only possible but an easy proposition with the right technology. Utilizing automated technology that can give you real time, actionable insights while reducing false positives and providing a holistic view of users will set your team and company up for success and ensure positive customer experiences.
The best solution has all the necessary components in one platform to help you meet your verification and AML compliance needs and stay ahead of fraud. Acuant Compliance uses advanced AI-powered technology to provide automated solutions that keep your business growing. We fit into your existing processes or can get you going from the start.
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